Alaska House of Representatives Republican Majority Ajournment Book

This 2010 Adjournment Package is intended to help you report back to your districts and constituents about the Majority Caucus's successes during the 2010 legislative session. Inside the package you'll find detailed breakdowns of the budget bills, highlights of priority Caucus legislation, a breakdown by member and committee, and a comprehensive list of legislation passed by the 26th Alaska Legislature.

I believe that our accomplishments will speak for themselves. We saved first, fully repaying the Constitutional Budget Reserve Fund and Statutory Budget Reserve Fund; set aside another $1.1 billion to forward-fund K-12 education; and, leave the Capitol with $12 billion in savings for future legislatures.

Our hard work on bringing natural gas to Alaskans will hopefully come to fruition in the near-term thanks to House Bill 369; Alaskans will be safer thanks to funding for Domestic Violence and Sexual Assault, the governor's crime package, and other crime and courts bills; and, voters will be better served with voter initiative and campaign finance reform.

We came to Juneau to uphold the Constitution, advocate for State's Rights, pass the budgets, and stand up for our districts and communities. It's my belief that we have.

I hope this document can help you provide the public with information highlighting the work that we accomplished as a Caucus, and by working together with the House Minority and Senate.

* Includes $64.9M in new legislation and $10.7M in operating expenses within SB230 - the Capital
Budget (figures courtesy Leg. Finance Adjournment Reports)

The Finance Committee conducted a careful and responsible review of the governor's proposal, with an eye towards finding efficiencies and examining non-discretionary and travel funding requests. The House forwarded a budget to the Senate that cut $34 million from the governor's amended request, including a 10-percent across the board cut to nonsafety or health-related state agency travel.

The budget bill advanced by the conference committee reflects a $75.5 million increase due to new legislation and operating expenses carried in the FY 11 capital budget bill.

House Finance Committee Operating Budget Co-Chair Mike Hawker, R-Anchorage, says the maintenance-level budget reflects the fiscal circumstances on the state's horizon, and points to formula-driven programs like Medicaid reimbursements and others for the growth.

We were able to pass a frugal, benevolent and humble FY 11 budget that, when you add it all up, reflects a responsible spending plan and allows the state to live within its means.~ Rep. Mike Hawker, R-Anchorage

The bills as advanced by the Legislature cuts .3% from the governor's FY 11 request.

* Includes $75.5M for the Anchorage State Crime Lab and $397.2M in general obligation bonds
proposed in HB 424 (figures courtesy Leg. Finance Adjournment Reports)

The Finance Committee received a bill from the Senate which already eclipsed the governor's stated request by 44-percent, with more than $850 million in additions from the governor's proposal in SB 230. The House added an additional $410 million, including legacy and anchor projects like the Anchorage State Crime Lab - switching it from certificates of participation to general fund - and the proposed Port Mackenzie Rail Extension.

House Finance Committee Capital Budget Co-Chair Bill Stoltze, R-Chugiak/Mat-Su, says the House version of the bill results from those legacy/anchor additions, which he says is how he would have liked to build the budget: from largest to smallest. Co-Chair Stoltze emphasized that the majority of House additions were for the general obligation bond package carried within House Bill 424.

I believe every Alaskan will benefit from this budget. We were frugal on district priorities but focused on providing hub projects and expanding the statewide reach of the bill. We focused on projects with a federal match that could create jobs for Alaskans and improve our infrastructure, roads, educational opportunities, and safety.~ Rep. Bill Stoltze, R-Chugiak/Mat-Su

Capital Budget totals by House District (in millions)

1 - Ketchikan

$52.457M

(1.7%)

2 - Sitka/Petersburg/Wrangell

$71.316M

(2.3%)

3/4 - Juneau Areawide

$69.649M

(2.2%)

5 - Cordova/Southeast Islands

$48.468M

(1.5%)

1/5 - Southeast Region

$71.858M

(2.3%)

6 - Interior Villages

$20.260M

(.6%)

7/11 - Fairbanks Areawide

$278.71M

(9%)

12 - Richardson/Glenn Highways

$24.482M

(.7%)

13/16 - Mat-Su Areawide

$167.47M

(5%)

17/32 - Anchorage Areawide

$563.77M

(18%)

33/35 - Kenai Areawide

$148.59M

(14.5%)

36 - Kodiak

$85.762M

(2.7%)

37 - Bristol Bay/Aleutians

$62.725M

(2%)

38 - Bethel

$137.75M

(4.4%)

36/38 - Southwest Region

$300M

(9%)

39 - Bering Straits

$78.116M

(2.5%)

40 - Arctic

$98.639M

(3.2%)

1/40 - Statewide

$1.0349B

(33.6%)

Total:

$3.0749B

(100%)

HB 424 G.O. Bond Projects

Mt. Edgecumbe HS aquatic facility

$20M

State Library, Archives & Museum

$18.5M

Alakanuk K-12 School

$46.5M

Kipnuk K-12 School

$49,9M

Kwigillingok K-12 School

$32.1M

UAA Mat-Su arts center

$23.5M

UAA Sports Arena

$60M

UAF Life Sciences Bldg

$88M

UAA Kenai housing

$16M

UAA Kenai Tech. center

$14.5M

UA PWSCC renovation

$5M

ADF&G Kodiak Near Island facility

$20M

DCC&ED Klawok Voc. Ed. Center

$3.2M

Total:

$397.2M

The FY 10 Supplemental Operating Budget -HB 326

Statewide totals

(millions)

Fund Transfers

GF

Unrestricted General

$103.2M

CBRF

$401.617M

Designated General

$93.7K

Public Ed. Fund

$1.11698B

Other State Funds

$3.02M

AIDEA Revolving

$79K

Federal Receipts

$55.6M

Total:

$3.0749B

Total:

$2.630B

* Includes $75.5M for the Anchorage State Crime Lab and $397.2M in general obligation bonds
proposed in HB 424 (figures courtesy Leg. Finance Adjournment Reports)

The Fiscal Year 2010 Supplemental Operating Budget, HB 326, included two significant fund transfers: one fully-repaying the Constitutional Budget Reserve Fund, or CBR; the other placing $1.1 billion into the Public Education Fund to forward-fund FY 2012 K-12 education. Both were pillars of the Majority Caucus platform heading into the 26th Alaska Legislature.

The largest supplemental appropriations were driven by Medicaid cost increases and services - $81.12M, fire suppression activities - $35.37M, inmate health care - $4.65M, and funding the arbitration award to the correctional officers union - $10.35M. We added intent language directing the Dept. of Administration and Dept. of Corrections to take any actions necessary to mitigate the future risk of the arbitration awards 50-percent increase in leave accrual, which we do not endorse. We also asked DoA to refrain, in future negotiations with other bargaining units, from considering the leave accrual levels granted to the correctional officers association.

The Budget Clarification Project - Truth in Budgeting

A special mention needs to be made for the ongoing Budget Clarification Project undertaken by the Legislative Finance Division, at the direction of the Legislature, spanning The FY 10 and FY 11 budget cycles.

LFD has been working for two years to improve the presentation of the state's budgets, including further defining so-called "other" funds and the following:

Re-appropriations

Fund transfers and duplicated appropriations, and

Fund code re-categorization

LFD secured agreement with the Governor's Office of Management and Budget to review all fund codes, re-distributing them among four categories: unrestricted general funds (UGF,) designated general funds (DGF,) corporate receipts/trust funds/bonds (Other,) and federal receipts (Federal.) LFD found that most of the fund movement and tracking occurred in "other" funds moving to designated general funds, moving some $750 million from other to general fund costs. LFD and the Finance Co-Chairs have said that this is not budget growth, instead re-framing the budget debate to focus on better spending decisions and a better general understanding of budget make-up.

The 26th Alaska Legislature repaid the state's rainy day savings account, the CBR, placed $1 billion into the Statutory Budget Reserve Fund, inflation-proofed the Permanent Fund - $870M, and forward-funded education for the third time in four years.

The state's principal savings accounts are repaid for the first time in 20 years, with unappropriated revenues still to be counted in July.

All told, we were able to save first, examine our spending, spend wisely, and still propose a capital spending plan that, taking a two-year look, will go to create jobs for Alaskans and build better infrastructure and communities.

There is still work to be done on the budgets, further budget analysis and clarification, but we've set the table for future legislatures to find efficiencies and continue to restrain government growth.

The Department of Revenue's Spring '10 Revised Revenue Forecast calls for TAPS production volumes of 619,000/bpd trading at $77.65, a drop from 650,000/bpd in FY 10. The problem arises when you take a look at their 10-year forecast, where some 500,000/bpd of new oil, under development or under evaluation, is to come on-line. We cannot count on that, or for the price of Alaska North Slope Crude to remain high. For those reasons and others, we cut $488M from the governor's FY 10 capital budget and spent the last two years reigning in the operating growth of state government.

Priority Legislation

Creating the Joint In-State Gasline Development Team - HB369

We have spent the better part of the last three decades looking for ways to monetize,
market, and supply our natural gas reserves for in-state use. We've spent more than $250
million performing studies. But the simple fact remains that we're still no closer today to
delivering gas to Alaskans than we were in the 80's. House Bill 369 will change that.

HB 369 creates the Joint In-state Gasline Development Team and tasks it with presenting a
development plan and financing options to the Legislature by July 2011, with the goal of
first gas flowing to Southcentral by 2015.

We're taking the politics out of the in-state gasline by placing Alaska Housing Finance
Corporation CEO Dan Fauske at the head of a group that will examine routes, rights-of-way,
permitting, delivery points, and different forms of project financing options.

They'll assume the lead role for in-state gas development, and analyze prospective projects
and routes that are the most economically feasible, makes natural gas available to residents
at the lowest possible cost, allows for the most connectivity along the entire route, and uses
state land and existing rights-of-way as much as possible.

The goal is to bring all these assets - plans and designs, permits and rights-of-way,
potential gas supply and purchase contracts, detailed project cost estimates, and all other
work - together for transfer or sale to the entity best able to complete the project.

We've specifically written language providing the team access to all other information
available from state agencies to cut down on duplication of work, provide better cooperation
and clear lines of communication.

The Department of Natural Resources will provide AHFC with a right-of-way lease for the
project upon completion to further expedite the process and provide potential builders
another level of assurance. That assurance also extends to the state's AGIA team, where
we've provided sideboards on conflicts of interest and priority; we're not circumventing or
subverting AGIA - we're honoring the state's commitment to the AGIA process while at the
same time honoring our commitment to Alaskans to provide them with gas to heat their
homes, schools, hospitals, and businesses.

ANGDA also benefits from the bill. The bill expands their purpose to include bringing gas to
all regions of the state, and allows the Authority to purchase and market gas supply.

The Team will report back to the governor and legislature by December with proposed
necessary legislation and provide a progress report on securing letters of intent from gas
buyers and sellers, potential builders and operating companies, and definitions of project
parameters.

The Cook Inlet Recovery Act - HB280

Southcentral Alaska residents and businesses are at risk of looming Cook Inlet natural gas
supply shortages and a lack of supply options which would allow production overages during
light-demand summer days to offset high-demand winter nights. It is under that critical
timeline that we passed House Finance Committee Co-Chair Mike Hawker and Speaker
Chenault's House Bill 280, the Cook Inlet Recovery Act.

CIRA provides financial incentives, including an income tax credit and 10-year exemption
from state land lease fees and rents to owners of new gas storage facilities put into
operation before Dec. 31, 2015, and sets standards on minimum size and access
requirements for qualifying projects.

In a few years, the Cook Inlet gas reserves we depend on today will not be enough to meet
the demand of Southcentral homes and businesses. Acting now, before there is a crisis, is
critical to securing a stable and affordable energy source for our community.

"The Cook Inlet Recovery Act will provide incentives to develop and authority to regulate
new gas storage facilities, which are essential to the utility provider's ability to meet peak
deliverability on the coldest days. CIRA also enhances existing tax credits for exploring for
new gas in the Cook Inlet.~ Bill Sponsor Rep. Mike Hawker

HB280 also recognizes the need to spur development and production of new, hard to
access, fields by increasing access to the existing incentives for exploration in Cook Inlet.

The industry and economists have been analyzing Southcentral risk for years now, and have
recognized the need to provide a legislative framework in addition to regulatory oversight. A
key question arising from the Regulatory Commission of Alaska's recent decision to deny a
TransCanada subsidiary's proposed gas storage proposal was based on their view that gas
storage is outside of their regulatory jurisdiction. CIRA answers this questing by adding
specific clauses to RCA's governing statutes that defines their jurisdiction over natural gas
storage facilities that provide service to regulated utilities. The bill also changes RCA
statutes to force the Commission to evaluate the long and short-term implications of
denying gas storage or supply contracts before making a decision on proposed contracts.

Declaring a State Energy Policy - HB 306

One of the reasons we created the House Special Committee on Energy was to work
towards establishing a roadmap for state, local and municipal governments to work within
as we consider new energy infrastructure, generation and delivery projects. The Energy
Committee spent the interim between the first and second sessions traveling the state and
meeting with stakeholders to pencil out ideas to include in a state energy policy. The result
is House Bill 306.

The policy will help us turn the corner from funding and studying every energy project
brought forward by focusing on four main goals:

Promote energy efficiency and conservation

Promote economic development through cost-effective, long-term sources
of energy for communities statewide

Support energy research, education and workforce development

Support coordination of governmental functions, streamlining of
regulatory processes and overall coordination of efforts at all levels of
government

The bill's declaration states: "The State of Alaska recognizes that the state's economic
prosperity is dependent on available, reliable, and affordable residential, commercial, and
industrial energy to supply the state's electric, heating, and transportation needs. The state
also recognizes that worldwide supply and demand for fossil fuels and concerns about global
climate change will affect the price of fossil fuels consumed by Alaskans and exported from
the state to other markets. In establishing a state energy policy, the state further
recognizes the immense diversity of the state's geography, cultures, and resource
availability."

Creating the state energy policy is one of the first steps to meeting the state's current and
future energy needs. The stakeholders and committee considered regional balance and
fairness, with an eye towards a policy that could work for both rural and urban Alaska.

HB 306 creates the policy within Alaska Statute Title 44, State Government, following the
Declaration of a state economic development policy, and a state mineral policy.

Resource Development

AIDEA Bonding Authority - HB 90

The Alaska Industrial Development and Export Authority, or AIDEA, is the state's semiindependent
project financing and investment agency. AIDEA promotes, develops and
advances economic growth projects, providing grants and bonds.

House Bill 90 amends the Authority's governing statutes, exempting conduit and refunding
revenue bonds from the $400,000,000 maximum amount issued per 12-month period. It
also provides better confidentiality of records and information, which AIDEA and project
developers have called for in the past.

The conduit revenue bond proceeds finance the acquisition or construction of projects that
promote economic development in Alaska, and are payable solely by the project developer
and related parties from revenue generated by the project. Refunding bonds refinance
existing bonds with the proceeds of new bonds carrying more favorable terms, like lower
interest rates.

In both cases, the bonds do not increase the amount of AIDEA's outstanding debt, but still
count against the Authority's 12-month aggregate under current state law.

HB 90 also re-instates AIDEA's ability to issue bonds that existed before a July 1, 2007,
statutory sunset. The $10,000,000 development project cap is still in place. The bill also
clarifies Authority statutes to allow AIDEA to use proceeds from refunding bonds to fund
reserves and finance the costs and expenses associated with the refunding bonds.

Separating Oil & Gas Taxes - SB 305

Oil and natural gas are taxed at one rate, based on the BTU equivalent value of both
commodities, under current state law. Senate Bill 305 separates - or de-couples - gas from
oil, which is currently trading at values 20 times higher. The U.S. Department of Energy
expects similar trading ranges over the next decade.

Lower-value gas dilutes the revenues generated by higher-value oil. Acting before the
commencement of TransCanada's AGIA-compliant Open Season on May 1 could save the
state an estimate $1.5-2 billion per year once gas begins flowing through a pipeline thanks
to AGIA's tax lock-in provisions. AGIA locks Alaska's current gas tax structure for the first
ten years of commercial production.

SB 305 separates oil and natural gas in calculating their production tax value to protect the
state's long-term financial interests. The bill doesn't affect the tax rate (25%) or the
progressivity provisions in ACES.

Cook Inlet Oil & Gas Tax Credits - SB 309

Gas storage and regulatory changes carried within the Cook Inlet Recovery Act, HB 280, can
work in tandem with the tax credits and incentives for the Inlet carried by Senate Bill 309.
The two-pronged approach to spurring Cook Inlet development is necessary with dwindling
known wells in production and the high cost of new exploration and development.

SB 309 amends and extends the exploration and development incentive tax credit enacted
in 2003 for operators and owners directly engaged in the Cook Inlet area. The bill makes
five significant changes:

Expands the credit's application to in-field development drilling

Increases the qualified capital expenses and investment services
credit to 25%, from 10%

Removes the 50% single year applicability cap

Extends the credit sunset date from Jan. 2013 to Jan. 2020

Establishes a special production tax credit for the first three wells
drilled into the pre-Tertiary strata of Cook Inlet with a jack-up rig.

The problem with the 2003 tax credit was that, while it was modestly successful in
stimulating new drilling, it did not incentivize in-field development - where the Department
of Natural Resources has projected most of the unproduced needed domestic supply
resides.

Restoring Voter Trust

Open & Transparent Initiative Act - HB 36

Restoring Alaskan's faith in the election process doesn't just come in the form of omnibus
ethics legislation or candidate campaign finance reform. The effort has to include the voter
initiative process, where recent attempts have been made to circumvent the system by
some, and exploit loopholes by others.

House Bill 36, the Open and Transparent Initiative Act, brings the same level of disclosure
to the initiative process as individual candidate campaigns and elected officials and
enhances the citizen initiative process. Alaskans deserve to know who is funding and
supporting voter initiatives in the same way they do candidates for public office. The bill
carries significant reforms, including:

Requiring an individual, person, non-group entity, or group that contributes a
total of $500 or more to a group organized for the principal purpose of
influencing a bill proposed for inclusion on the ballot to report the contribution or
contributions to APOC no later than 30 days after the contribution is made.

Provides that each person other than an individual shall register with APOC
before making an expenditure in support of or in opposition to a proposed
initiatives bill filed with the Lt. Governor.

Expands the meaning of "proposition" to include an initiative proposal application
filed with the Lt. Governor.

Establishes new reporting requirements for initiative committees, persons,
groups, or non-group entities making certain contributions or expenditures in
support of or in opposition to an initiative proposal application filed with the Lt.
Governor or an initiative that has been approved for placement on the ballot

Expands the definition of "contribution" applicable to state election campaigns to
include certain purchases, payments, promises, or obligations to pay, loans or
loan guarantees, deposits or gifts of money, good, or services for which a charge
ordinarily made that is made for the purpose of supporting or opposing an
initiatives proposal application filed with the Lt. Governor.

Expands the definition of "expenditure" applicable to state election campaigns to
include an initiative proposal application filed with the Lt. Governor.

Adds "single subject" confinements to initiatives, similar to proposed legislation.

Requires that each initiative petition contains a copy of the proposed initiative
bill.

Requires the Lt. Governor to hold at least two hearings in each judicial district of
the state and provide reasonable notice of each hearing.

Requires an election pamphlet to be prepared and mailed to each household for
any special election at which a ballot proposition is scheduled to appear on the
ballot, containing the full text of the proposition, ballot title and summary,
statement of the costs to the state for implementation, neutral summary,
statements in support and opposition, and any additional information the Lt. Gov.
deems necessary.

Requires that a standing committee of the legislature review initiatives that the
Lt. Governor has approved for placement on the ballot

Campaign Disclaimer & Disclosure - SB 284

The New Year brought a new concern in protecting Alaska's election process. The U.S.
Supreme Court ruled, in Citizens United v. Federal Election Commission, that corporations
have the same protected speech under the Constitution as a person, thus nullifying
corporate bans on campaign expenditures.

The ruling did nothing to harm the state's direct corporate campaign expenditure ban, but it
did open up a potential Pandora's Box where corporations, unions, and associations could
spend unlimited amounts of money through independent expenditures on campaigns
without having to disclose or provide disclaimers on information presented before voters.

Senate Bill 284 addresses that reporting lapse. The bill brings corporations and labor unions
under the same requirements as persons, mandating they report their contributions and
expenditures in elections, providing full disclosure to voters. The bill also requires
disclaimers that identify the communicating person's three largest contributors, the person's
address, principal place of business, and principal officer on all audio, video and print
communications.

Passage of SB 284 ensures that corporations and labor unions will be held to the same,
strict and rigid reporting requirements as a person when making independent expenditures;
retaining Alaskan's trust in the upcoming fall election, and all future elections.

Valuing our Visitor Industry

Cruise Passenger Vessel Tax Reduction - SB 312

The decline in cruise ship passengers over the past two seasons has significant economic
impacts on Southeast Alaska communities and businesses. Cruise passenger numbers have
declined from more than a million two years ago, to less than 840,000 last summer. Senate
Bill 312 lowers the voter initiative-created Commercial Passenger Vessel Tax from $46 to
$34.50, which follows the governor's proposed tax level agreed upon by the industry to
drop their law suit against the state.

SB 312 also brings parity to the tax by providing $5 to up to seven ports of call, while still
allowing Ketchikan and Juneau to levy their own taxes.

The bill leaves the original intent of the voter initiative in place, relating to water and
wastewater discharge, onboard Ocean Rangers, and monitoring.

The gaming tax from vessels will now be deposited into a gaming and gambling subaccount.

Rental Car Agency Fee Disclosure - SB 287

Alaska rental car agencies will have to separately list charges and fees, similar to laws in 30
other states, thanks to passage of Senate Bill 287. The bill means charges for the cost of
licensing, concessions, and airport or facility-related expenses passed on to consumers in
the past will have to be listed separately and clearly identified. The so-called "cost recovery
fees" will be subject to full disclosure and transparency, helping consumers navigate their
rental car agreements.

Supporting Alaska's Tourism Marketing Efforts

We made two significant contributions to the Alaska Travel Industry Association this
session: $5 million to ATIA's budget by amending the operating budget, and a $2 million
grant in the capital budget for a national television campaign to promote the state.

ATIA had worked with members in both bodies, including Rep. Charisse Millett, to
sustainably fund the Association's budget through a member tax credit. Though that plan
did not pass, we backstopped the Association's budget, allowing it to continue to market
Alaska.

Bills by Topic

Protecting Victims & Alaska Families

HB 6 outlaws the practice of bestiality in Alaska, and allows law enforcement to use
this information to take steps to prevent violent crimes against children and
vulnerable adults. The bill also classifies such violations as a Class C felony, and adds
animal cruelty as an aggravating factor in felony convictions.

HB 50 prohibits mandatory overtime for nurses in Alaska hospitals, in certain
situations. The bill amends state law to say nurses can work up to 14 consecutive
hours then require a rest period of 10 hours, and that nurses cannot be forced to
work more than 80 hours in a 14-day period.

HB 114 enables the governor to use state transportation assets and infrastructure to
provide aid to Alaska communities in times of economic emergency, since declaring a
natural disaster doesn't apply, such as the situation in Emmonak last winter.

HB 190 enhances the Alaska Children's Trust Board of Trustees ability to invest in
programs aimed at preventing child abuse in Alaska. The bill changes the Trust to an
endowment model, using a rolling three-year average of five percent of the market
value to determine the amount eligible for grant awards. Grant awards will be
deposited into a grant account, allowing the Board to have a more predictable
funding stream.

HB 238 removed "the number of persons under 18 years of age in the household" as
reasonable grounds that a landlord may use to refuse consent to a lease or sublease
for a potential tenant, and upholds familial status as a protected class under federal
fair housing laws.

HB 324 revises state bail statutes, requiring persons charged with an unclassified or
Class A felony and certain other crimes to bear the burden of proving conditions or
bail amounts are sufficient enough to protect the public. The bill also prohibits a
court from releasing a defendant found guilty of a sexual felony pending imposition
of a sentence or an appeal.

HB 334 provides clear directives to the courts concerning military members in a child
custody battle; provides specific rights for the military parents in terms of visitation,
expedited hearings, and says a court cannot use a military deployment to deny
custody and upholds the child's-best-interest test.

SB 110 requires that biological evidence in murder and sexual assault cases is
properly retained while cases are unsolved and during the period after conviction
that an offender is imprisoned or required to register as a sex offender. The bill also
provides for procedures for post-conviction DNA tests.

House Finance Committee Capital Budget Co-Chair Bill Stoltze amended $75,750,000
into SB 230 to fund the sought-after Anchorage State Crime Lab. Funding via
certificates of participation was introduced through HB 426, but the capital funding,
using general funds, pays for the project now, without adding to outstanding debt in
the future.

HJR 45 urges the U.S. Congress not to enact any version of cap and trade legislation,
which would negatively impact Alaskans and instead enact legislation that
encourages states to establish and develop their own renewable energy portfolio.

HJR 51 urges the U.S. Congress to change the Secure and Fair Enforcement for
Mortgage Licensing Act (SAFE) to make exceptions for unique Alaska properties that
do not fit what the federal government sees as eligible for conventional loans.

HCR 22 creates the Alaska Northern Waters Task Force, the ANWTF, which would
bring together legislators from Northwest Alaska, Arctic community leaders, and
representatives from key federal agencies to form a joint federal and state entity to
coordinate interests in regards to the development of Alaska waters. The group
would focus on Arctic transportation routes, national security and resource
development.

Transportation, Infrastructure and Lands

HJR 42 would have proposed to put a constitutional amendment before voters on
whether or not to create the Alaska Transportation Infrastructure Fund, a dedicated
fund that would fund and execute Capital Transportation Projects. Did not go past
Senate Finance.

HJR 26 urges the U.S. Congress to adequately fund land surveys granted by the
Statehood Act and ANCSA in Alaska to issue patents to the State and ANCSA Native
Corporations. The federal government is responsible for preparing these land
surveys, but does not adequately fund the Bureau of Land Management.

HB 210 lays the groundwork, after three decades, for exchanging 43,000 acres of
state Alaska Peninsula Wildlife Refuge lands in exchange for 206 acres of the
Izembek National Wildlife Refuge for a road corridor allowing access to the Cold Bay
airport for King Cove residents to alleviate health and safety concerns. Also
designates the Kinzarof Lagoon as part of the Izembek State Refuge.

HCR 2 urges the governor to take action facilitating the development of a smalldiameter
gas pipeline by securing permits, rights of way, engineering specifications
and other approvals, and bundling them for sale to interested private sector pipeline
companies. It also supports the export license renewal for the Kenai LNG facility.

Education

HB 70 establishes the Farm-to-School program within the Department of Natural
Resources, working jointly with the Department of Education & Early Development,
to allow school districts to authorize or operate a garden or farm for educational
purposes.

HB 424 places a ballot question before voters to approve general obligation bonds to
pay for the design and construction of a number of education and research projects
across the state. This includes three rural schools, improvements to schools and
University of Alaska college campus facilities, a community arena at the University of
Alaska Anchorage, and the Life Sciences facility at the University of Alaska Fairbanks.
The proposed offering is $397.2M.

SB 237 creates a stream of funding that can be used for Regional Education
Attendance Area school construction, and changes the process of funding for such
schools to come to par with schools funded in municipal areas, using a 70/30
participation model.

Fiscal Policy & the Economy

HJR 45 urges the U.S. Congress not to enact any version of cap and trade legislation,
which would negatively impact Alaskans and instead enact legislation that
encourages states to establish and develop their own renewable energy portfolio.

HB 363 changes the make-up of the Alaska Industrial Development and Export
Authority. The bill adds two members - bringing the total to 7 - restructuring it to
put private sector strategic leadership at the helm of the state's development
financing corporation. The change will allow AIDEA's board to form subcommittees
and represent a broader spectrum of industries and regions in the state.

HR 16 urges the U.S. Congress to expeditiously pass H.R. 4866 and recommends
continued exploration of rare earth mineral deposits in Alaska. The bill before
congress, the RESTART Act, would re-establish a competitive rare earth elements
production industry, allowing our country to begin meeting its own supply demands.

HR 17 urges the U.S. Department of Energy to expedite approval of the Kenai LNG
Plant's export license through 2013. The plant currently provides more than 60 highpaying
and family-sustaining jobs to Peninsula residents and has returned more than
$130,000,000 to the City of Kenai and Kenai Peninsula Borough in taxes and
revenues. The plant also ensures a stable supply of natural gas flowing through
Southcentral Alaska.

Business

HCR 21 creates the Economic Planning Commission in the legislature, to develop and
recommend visions and strategies that will encourage economic development in the
state through recommendations and proposed legislation. The EDPC will report back
to the governor and legislature Jan. 30, 2011, and terminate June 30, 2012.

HB 354 expands the Capstone Avionics Loan Program, enacted in 2008, to include
leased aircraft, closing an unforeseen gap in the original legislation. A safety study
commissioned by the FAA showed a 47-percent decrease in accident rates during the
equipment's pilot program. CALP loans cover up to 80-percent of the cost of
converting to Capstone avionics; can last 10 years, with a borrowing rate of fourpercent.

HB 344 extends the deadline for salmon processors in Alaska to receive the SPD tax
credit four years, through Dec.31, 2015. The bill also adds ice-making machines to
the list of equipment eligible to receive the credit. The program allows applicants to
recover 50-percent of the cost through a credit to their fisheries business tax.

HB 70 establishes the Farm-to-School program within the Department of Natural
Resources, working jointly with the Department of Education & Early Development,
to allow school districts to authorize or operate a garden or farm for educational
purposes.

HB 315 updates Alaska's uniform accountancy statutes to allow mobility and
portability for Certified Public Accountants and accounting firms who do business in
Alaska, but are not principally located here. The bill also amends statutes to allow
non-CPAs to own a minority interest in an accounting business.

HB 416 allows the state to adopt the Uniform Prudent Management of Institutional
Funds Act, or UPMIFA. The Act replaces obsolete rules and concepts relating to the
investment and management of endowments and charitable funds. UPMIFA provides
clear definitions on prudent practices and standards, allowing nonprofits and
volunteer trustees to better meet their fiduciary responsibilities.